New Delhi, April 23 (KNN) The steel industry has committed to supplying metal to micro, small and medium enterprises (MSMEs) at rates equivalent to export prices, a senior government official confirmed on Tuesday.
This announcement addresses concerns that the recently imposed safeguard duty on certain imported steel products would negatively impact smaller enterprises.
On Monday, the government introduced a 12 percent provisional safeguard duty, effective for 200 days, on five categories of steel products including hot rolled coils, sheets, and plates.
This measure, implemented following recommendations from the commerce ministry’s Directorate General of Trade Remedies (DGTR), aims to protect domestic manufacturers from a surge in imports.
The duty becomes applicable when imports arrive at a value lower than the specified threshold for each product category.
These steel products serve as essential inputs for various domestic manufacturing sectors, particularly those involved in engineering goods production.
Steel Secretary Sandeep Poundrik clarified the situation during a press briefing on Tuesday, stating that the steel industry has already established a system to supply MSMEs at export parity prices to shield them from potential price increases.
Export parity pricing refers to the adjusted international market price at which domestic producers sell steel in foreign markets, after accounting for freight and export-related expenses.
By offering this pricing structure to MSMEs, the government ensures smaller manufacturers are protected from price surges resulting from policy interventions.
Poundrik noted that the steel industry is actively engaging with the Engineering Export Promotion Council (EEPC) to implement this arrangement for export-oriented MSMEs.
He acknowledged that some criticism of the decision was expected, as steel serves as an input for many sectors rather than an end product.
Additionally, Poundrik revealed that two anti-dumping investigations against China and Vietnam are nearing completion, with recommendations expected soon following concluded hearings.
(KNN Bureau)
